Pairtrade

The idea of pair trading: Industrial Metals & Minerals.

NYSE:OCIR   OCI RESOURCES LP
Ladies and gentlemen, I recommend you the idea of the pair trade:

1. it is long position in the company OCIR             ( OCI Resources LP             ) and short position in the company RIO             ( Rio Tinto plc             ).
2. it is long position in the company OCIR             ( OCI Resources LP             ) and short position in the company ARLP             (Alliance Resource             Partners LP).

Stocks of the company OCIR             are stronger than RIO             and ARLP             since 2014. I think that next 2 months stocks of the company OCIR             will be stronger than RIO             ana ARLP             .

Risk-management:
I reccomend to use a conservative approach. The trade capital divide equally between 2 pairs: OCIR-RIO and OCIR-ARLP.

The proportions of each company in pairs:
1. Stocks of the company RIO             are more volatility than OCIR:
* 53% it is long OCIR             .
* 47% it is short RIO             .

2. Stocks of the company OCIR             are more volatility than ARLP:
* 37% it is long OCIR             .
* 63% it is short ARLP             .

This allocation between stocks is necessary for the parity volatilities.
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